21-20 (similar to In May 2018, Limonade produced 18,000 cases of powdered drink mix and sold 19,000 cases, of which 1,000 were produced in April. The total April production was 20,000 The sales price was $22, variable costs were $8 per case ($6 manufacturing and $2 selling and administrative), and total fixed costs were $90,000 ($72,000 manufacturing and $18,000 selling and administrative). Limonade's May income statement using variable costing follows (Click the icon to view the variable costing income statement.) Income Statement (Absorption Costing) Ended May 31, 2018 2 9 5 6 8 9 Income Statement (Variable Costing) Month Ended May 31, 2018 ariabl Net Sales Revenue 418,000 May inco Variable Costs: Variable Manufacturing Overhead $114,000 38.000 152.00 me Staten Variable Selling and Administrative Costs Month Contribution Margin 266,000 Fixed Costs 72,000 18,000 Fixed Manufacturing Overhead 90,000 Fixed Selling and Administrative Costs 176,000 Operating Income r enter any nu Print Done Ch 1. Prepare the May income statement using absorAtion costing. 2. Is operating income using absorption costing higher or lower than variable costing income? Explain why. 3. Determine the balance in Finished Goods Inventory as of May 31. Print Done Done per in the input fields and then click Check Answer. Clear All